Dissecting the U.S. Equity Market
This commentary takes an in-depth look at the U.S. equity market.
Research Publications Archive
Why Are U.K. Equities Outperforming?
Historically U.K. equities have outperformed European equities during periods of market weakness due to the U.K. market’s weighting in classic defensive groups. However, the outperformance this go-round is due to the financial sector. The U.K. banking subsector was boosted by acquisition activity and investors’ preference for U.K. banks’ low volatility, high dividend yields, and strong…
Emerging Markets Debt
An overview of emerging debt including correlations with other asset classes, risks (volatility, default, interest rate, currency), investment vehicles, and benchmarks. Exhibits cover market capitalization, credit quality, country debt ratios, Brady bond yields, benchmark returns, and fees and performance data on representative emerging debt managers.
Are Emerging Markets Equities Still Cheap?
To gauge the effect of MSCI Emerging Markets Free’s stunning rally on their valuations we use four metrics—price-to-earnings, price-to-book, price-to-cash earnings, and dividend yield—to compare current valuations to historical emerging markets valuations and to developed markets equity valuations. Although the end result is unequivocal, we nevertheless find that emerging markets equities remain inexpensive.
Valuations of Small-Cap Equities
Small-cap equities have thrashed large caps over the last two years. While the performance disparity between small and large caps is already significant, the small-cap rally may still have some legs if history serves as a useful guide. Investors should maintain exposure to both small and large caps, rebalancing among both the capitalization sectors and…
European Equity Valuations
Although valuation metrics show mixed results, we remain cautiously optimistic about investing in European and U.K. equities.
U.K. Reflation Watch
In the United Kingdom inflation is under control but increasing, driven by strong consumer spending and rising oil and housing prices.
Inflation Watch
The consensus among economists and analysts seems to be that inflation does not pose a threat to the global economy.
Aftermath of the Venture Capital Bubble
Reviews investors’ concerns of capital overhang and interim valuations, and highlights that investors should keep in mind that downturns are part of the nature of this asset class, and this one comes on the heels of an unprecedented upswing.
European Private Equity
An analysis of the rapidly expanding private equity markets in the U.K. and continental Europe using the following criteria: sources of capital, market segments, valuations, leverage, and exit environment. Also included are summaries of individual country markets and exhibits covering capital commitments, EBIT purchase multiples, IPOs, M&As, and distributions to limited partners.